§ Mr. Ralph Howellasked the Secretary of State for Defence if he will publish a table on the same basis as the reply to the hon. Member for North Norfolk, Official Report, 22nd November 1977, columns 683–90, showing net weekly spending power before and after one new pay award for each of a private I and IV, a corporal I and a sergeant, assuming two and four dependent children in each case; and what is the percentage increase in each case.
§ Mr. MulleyThe information is as follows: 319W
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TABLE 1 MARRIED COUPLE WITH TWO CHILDREN AGED 4 AND 6 MARRIED QUARTERS CHARGE £9.59; WORK EXPENSES £1.25 Before 1978 pay award (£2.50 child benefit) Rank Gross pay N.I. Tax FIS R and R rebate Free School meals Free Welfare milk Net weekly spending power £ £ £ £ £ £ £ £ Private IV (Scale A) … … … 41.26 2.04 2.16 3.27 4.86 1.25 0.95 39.05 Private I (Band 1, Scale C) … … 54.00 2.67 6.49 — 2.54 1.25 0.95 41.24 Corporal I (Band 2, Scale C) … … 70.83 3.51 12.21 — — — — 46.77 Sergeant (Band 5, with 12 years service) … 78.33 3.88 14.76 — — — — 51.35 After 1978 pay award (£4.60 child benefit) Rank Gross pay N.I. Tax FIS R and R rebate Free School meals Free Welfare milk Net weekly spending power Percentage increase £ £ £ £ £ £ £ £ Private IV (Scale A) … … … 46.34 1.96 4.96 0.73 3.65 1.25 0.95 39.76 1.8 Private I (Band 1, Scale C) … … 60.34 2.42 9.72 — 0.60 1.25 — 43.81 6.2 Corporal I (Band 2, Scale C) … … 80.22 3.08 16.48 — — — — 54.42 16.6 Sergeant (Band 5, with 12 years service) … 88.20 3.34 19.20 — — — — 59.42 15.7
TABLE 2 MARRED COUPLE WITH FOUR CHILDREN AGED 3, 8, 11 AND 16 MARRIED QUARTERS CHARGE £10.99; WORK EXPENSES £1.25 Before 1978 pay award (£5.50 child benefit) Rank Gross pay N.I. Tax FIS R and R rebate Free School meals Free Welfare milk Net weekly spending power £ £ £ £ £ £ £ £ Private IV (Scale A) … … … 41.26 2.04 — 7.27 7.27 3.75 0.95 51.72 Private I (Band 1, Scale C) … … 54.00 2.67 3.62 0.90 5.17 3.75 0.95 51.74 Corporal I (Band 2, Scale C) … … 70.83 3.51 9.34 — 1.48 3.75 0.95 57.42 Sergeant (Band 5, with 12 years service) … 78.33 3.88 11.89 — — 3.75 — 59.57 After 1978 pay award (£9.20 child benefit) Rank Gross pay N.I. Tax FIS R and R rebate Free School meals Free Welfare milk Net weekly spending power Percentage increase £ £ £ £ £ £ £ £ Private IV (Scale A) … … … 46.34 1.96 30.1 4.73 5.22 3.75 0.95 52.98 2.4 Private I (Band 1, Scale C) … … 60.34 2.42 7.77 — 30.5 3.75 0.95 54.86 6.0 Corporal I (Band 2, Scale C) … … 80.22 3.08 14.53 — — 1.25 — 60.82 5.9 Sergeant (Band 5, with 12 years service) … 88.20 3.34 17.24 — — — — 64.58 8.4 Notes: (i) All figures quoted are theoretical illustrations only; in particular it should be remembered that the Private IV is the recruit grade in which a man will only remain during his six months basic training. The average age of Private IV's is 18.5 years. For this rank families of the size shown in the tables are thus highly improbable. The average age for a private is 23.9 years. (ii) The weekly spending power figures take account of all the factors in the table including married quarter charges, work expenses and child benefit. (iii) In calculating deductions no account has been taken of the tax changes announced in the Budget. However the post-pay award figures take account of the increased child allowances introduced in April, and the consequential reductions in child tax allowances, and also of the new ERNIC rates. Entitlement to means tested benefits has been assessed on the assumption that there is no family income other than the Serviceman's military salary and child benefit and that no H.P. or life insurance payments are made. (iv) Married quarter charges are made up of elements covering rent, rates, hire of furniture, and additional maintenance. In calculating the amount of rent and rates rebate due under the Forces scheme the first two elements only are taken into account that is £7.32 for the £9.59 quarter, and £8.48 for the £10.99 quarter. However, the entire married quarter charge is used in calculating entitlement to free school meals and welfare milk. (v) The figure of £1.25 is the standard contribution which Servicemen make to the cost of home to duty travel, the excess normally being refundable. In practice many men living in married quarters would be within walking distance of their work or be conveyed by official transport and thus no cost would be incurred.